Experience has shown that it is normally long serving and trusted employees who present the biggest risk to organisations when it comes to fraud or financial misconduct in the workplace. These employees are fully aware of the organisation’s systems and processes; research has shown that they are rarely questioned by management.
A leading international insurer established that over 80% of frauds or instances of financial misconduct were being committed by employees within their own organisation.
Further research identified that almost 48% of all instances of fraud and financial misconduct were detected by whistleblowing systems. Whistleblowing systems are by far the best method of detection, with internal and external audits resulting in detections of 19% and 10% respectively.